This essay focuses on International Monetary Fund. This week’s discussion looks at the gold standard and the IMF. Thinking about the collapse of the gold standard, is there a case for returning to a gold standard

 

International Monetary Fund

 

Gold Standard/ International Monetary Fund

This week’s discussion looks at the gold standard and the IMF.

Thinking about the collapse of the gold standard

Firstly, is there a case for returning to a gold standard?

Secondly, Why and what is it?

As far as the IMF,

Thirdly, what opportunities might current IMF lending policies to developing nations

create for international businesses?

In addition, What threats might they create?

the IMF

The International Monetary Fund (IMF) is an organization of 190 countries,

working to

Firstly, foster global monetary cooperation,

Secondly, secure financial stability,

Thirdly, facilitate international trade,

In addition, promote high employment

Further, and sustainable economic growth,

Finally, and reduce poverty around the world.

Create in 1945,

the IMF is govern by and accountable to the 190 countries that make up its near-global membership.

 

The IMF’s primary purpose is to ensure

Firstly, the stability of the international monetary system

Secondly, the system of exchange rates and international payments

that enables countries (and their citizens) to transact with each other.

The Fund’s mandate was update in 2012 to include all macroeconomic

and financial sector issues that bear on global stability.

^[1] Form in July 1944,^[7] at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes

,^[8] it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international monetary system.

It now plays a central role in the management of balance of payments difficulties and international financial crises.

^[9] Countries contribute funds to a pool through a quota system

from which countries experiencing balance of payments problems can borrow money.

As of 2016, the fund had XDR 477 billion (about US$667 billion).^[10]

Through the fund and other activities such as the gathering of statistics

and analysis, surveillance of its members’ economies, and the demand for particular policies,^[11]

the IMF works to improve the economies of its member countries.

^[12] The organization’s objectives state in the Articles of Agreement are:

^[13] Firstly, to promote international monetary co-operation,

Secondly,  international trade,

Thirdly, high employment,

In addition, exchange-rate stability,

Further, sustainable economic growth,

Lastly, and making resources available to member countries in financial difficulty

.^[14] IMF funds come from two major sources: quotas and loans.

Quotas, which are pool funds of member nations, generate most IMF funds.

The size of a member’s quota depends on its economic and financial importance in the world.

Nations with greater economic significance have larger quotas.

The quotas are increased periodically as a means of boosting the IMF’s resources in the form of special drawing rights.^[15]